FINRA General Securities Representative Examination (GS) : Series7

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Exam Code: Series7

Exam Name: General Securities Representative Examination (GS)

Updated: Oct 05, 2026

Q & A: 400 Questions and Answers

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About FINRA General Securities Representative Examination (GS) : Series7 Exam

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FINRA Series7 Exam Syllabus Topics:

SectionWeightObjectives
Seeks Business for the Broker-Dealer from Customers and Potential Customers9%- Customer acquisition and prospecting
  • 1. Business development activities
  • 2. Communications with the public
Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives11%- Customer accounts and documentation
  • 1. Suitability and customer profile
  • 2. Account types and registrations
  • 3. Customer identification requirements
Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions7%- Trade execution and settlement
  • 1. Order handling
  • 2. Trade processing
  • 3. Settlement and confirmations
  • 4. Books and records requirements
Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records73%- Investment products
  • 1. Debt securities
  • 2. Equity securities
  • 3. Government securities
  • 4. Municipal securities
  • 5. Investment companies and variable products
  • 6. Options
  • 7. Direct participation programs
- Customer recommendations and transactions
  • 1. Suitability and best interest obligations
  • 2. Asset transfers and record maintenance
  • 3. Portfolio and risk considerations

FINRA General Securities Representative Examination (GS) Sample Questions:

Question #1

When does a call option provide the most value to its holder?

  • A. when there is a large open interest in that class of option
  • B. when the underlying stock price is rising
  • C. in the month prior to its expiration
  • D. when the underlying stock is extremely volatile
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #2

Bubba Corporation has a registered public offering of 750,000 shares at $40. An underwriter of 30,000
shares is advised by the manager that its retention will be 70%. How many shares may the underwriter
sell to its own customers?

  • A. as many as it can up to a maximum of 51,000
  • B. 21,000
  • C. 9.000
  • D. 30,000
Reveal Solution  Discussion  0

Correct Answer: B  🗳️

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Question #3

In a 401(k) plan, when are employee's contributions of compensation deferral vested?

  • A. immediately
  • B. after 2 years
  • C. after 5 years
  • D. the same as the employer's contributions
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #4

In mid-September, Bubba sells one XYZ February 50 call at $6. It subsequently expires without being
exercised. How is the premium taxed?

  • A. the $600 premium is a capital gain
  • B. the $600 premium constitutes ordinary income
  • C. Bubba's cost of the underlying stock is reduced
  • D. the $600 premium is rolled over into another XYZ call with the next longest expiration date.
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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Question #5

Which of the following statements is not true about a letter of intent?

  • A. a shareholder may not redeem any shares for 13 months
  • B. a certain portion of shares purchased are held in escrow until the terms of the letter are met
  • C. the letter of intent has a maximum duration of 13 months
  • D. a letter of intent may be backdated by 90 days
Reveal Solution  Discussion  0

Correct Answer: A  🗳️

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